Studies prove that people of color tend to pay more when financing a vehicle. The key to driving the best deal home as it relates to financing is to have a keen understanding of the credit process. As of 2001, “The Consumer Credit Score Disclosure Act” now provides all consumers access to their credit/FICO (Fair Isaac Corporation) score. With all of the tools available today, there is no need to remain in the back seat as an uninformed consumer.

1. Access your credit score and report. By accessing your credit score and report via the credit reporting agencies, this will not affect your score. If you allow your lenders to access your credit report and score, this could affect your credit score.

Click here to access your FICO score.

2. Review and analyze your credit report for accuracy. To learn the ins and outs of establishing, re-establishing or maintaining your credit and the credit scoring system, read

“Understanding Your Credit Score."

3. If there are inaccurate items on your credit report, this could affect your credit score, the interest rate you’re assigned and/or decrease your chances of being approved for a loan. The higher the credit score, the better chance you have of receiving a lower interest rate.

4. If there is inaccurate information on your credit report, take the appropriate steps provided by the credit reporting source to resolve any concern. Make sure you provide appropriate documentation to resolve your concern.

5. It’s time to go loan shopping! Seek approval for a loan through more than one source. Get pre-approved for a loan via our online source, your financial institution and/or credit union prior to purchasing a vehicle. This will save you time and energy from being hassled by the finance department of a dealership. If you’re apart of a church credit union, you may want to accept the rate being provided by the credit union since you’re aiding the growth of your religious institution. You could view this as
a form of tithing.

6. Once you have been pre-approved with an interest rate you’re now in a position for the dealership to make finance arrangement for you. See if the dealer is in a position to match or lower your pre-approved rate. If your rate is better than what the dealer offers, stay with your approval source. This same process can be utilized when seeking a home, boat, motorcycle, credit card interest rate or personal loan. Do you know the total cost of the loan and if there is a prepayment penalty for paying off the loan early? Before you accept any loan, make sure the loan amount, the interest rate, the term of the loan and the total cost of the loan is what you agreed to.

7. If you believe the interest rate you have is too high, consider refinancing your loan through our secured on-line financial institution. What do you have to lose? You may find that you’ve saved yourself some money.

To refinance your loan, click here.

By following the aforementioned steps, this should aid you in avoiding predatory automotive lending practices. Other outside factors that may control your automotive interest rate include but isn’t limited to your work history, income, previous car-payment history and/or the down-payment. A number of car companies offer special interest rates to first time buyers, upcoming and/or recent graduates of a 2-year or 4-year institution of higher learning. Visit for more details. These tips should help keep you in the driver’s seat.

Provided by, 6/2005

Contact Us copyright © 2002-2005




Credit Factoid:

Looking for a mortgage or an auto loan may cause multiple lenders to request your credit report, even though you’re only looking for one loan. To compensate for this, the score counts multiple inquires in any 14-day period as just one inquiry. In addition, the score ignores all inquiries made in the 30 days prior to scoring. If you find a loan within 30 days, the inquiries won’t affect your score while you’re rate shopping.

Fair Isaac –Understanding
Your Credit Score



Tips to Drive Away Predatory
Automotive Lending Prac